The Court of Arbitration for Sport (CAS) has rejected an appeal from Galatasaray to overturn a one-season ban from UEFA competitions for breaking the governing body's financial fair play (FFP) regulations.
UEFA imposed the one-year European ban on Galatasaray in March and also threatened an extension of the sanctions unless the club bring their wage bill under control.
Galatasaray would have secured qualification for the 2016-17 Europa League courtesy of winning the Turkish Cup in May.
But a CAS panel dismissed the Galatasaray appeal, saying UEFA's regulations had been "properly applied."
UEFA's club finance panel are able to sanction clubs who contravene their fair play rules due to overspending or missing financial targets.
In 2014, the cases of Manchester City and Paris Saint-Germain dominated the first round of sanctions in the FFP project. Both clubs had €20 million in UEFA prize money withheld.
In a lesser case, UEFA fined Galatasaray €200,000 and ordered the club to break even on football-related trading over a three-year period.